Account type: Accumulated Depreciation
Marks the contra account that collects depreciation posted so far, reducing net book value.
In detail
Account type Accumulated Depreciation marks the contra asset account that collects every depreciation posted so far, so the fixed asset account can stay at original cost. It sits on the asset side of the Balance Sheet with a credit balance and is shown as a deduction, giving the net book value. The demo has Accumulated Depreciation - YFF for property, plant and equipment, Accumulated Depreciation - Right-of-Use - YFF and Accumulated Amortisation - YFF for intangibles. Every Depreciation Entry credits it, as ACC-JV-2026-00091 did for Rs 1,235.54, and a disposal debits it to clear the asset's share. Its balance should equal the sum of the posted schedule rows for all assets.
Formula
Accumulated Depreciation = Sum of all posted depreciation - amounts cleared on disposal
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Depreciation - Property, Plant and Equipment - YFF | Rs 1,235.54 | |
| Accumulated Depreciation - YFF | Rs 1,235.54 |
How to record it in BRAccount
- 01Go to Accounts Setup > Chart of Accounts and open Accumulated Depreciation - YFF under Property, Plant and Equipment.
- 02Confirm Account Type is Accumulated Depreciation; the Asset Category points here.
- 03Each monthly Depreciation Entry credits it, as in the entry below.
- 04Click View Ledger and compare the balance with the Fixed Asset Register report.
When to use it
Set on Accumulated Depreciation accounts and pick them in each Asset Category.
Example from the demo books
Credited Rs 1,235.54 by ACC-JV-2026-00091.